India's poorest 50 per cent pay two-thirds of GST: Oxfam

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c14-Isotope said:
GST is consumption tax. And GST rates are same for all. To assume that the poor are paying more GST than the middle, upper class would mean the poor are consuming more goods and services than the middle, upper class.

Is this even possible?
Click to expand...
Its actually very simple.

Say you buy a Tata Safari, top of the line model. The price on road will be:

Tata Safari Price : 2,200,000 INR
GST + CESS : 1,100,000 INR
Total before registration : 3,300,000 INR

A common 2 wheeler bike (Hero Splendor) will cost :
Price : 62000
GST : 28% or 18,000
Before registration: 80,000

Now if you buy a Range Rover Autobiography in India I will pay 10 times.
US Price: 168000 USD
Basic Duty : 125%
CVD : 30%
Lots of other bullshit duties
Total : 213.6%
Source : https://www.zauba.com/customs-import-duty/range-rover-/india.html
Total import duties on Range Rover : 168000 * 2.136 = USD 360,000
In INR. Total price before registration:
14,000,0000 + 30,000,000 = 44,000,000 INR.

Total taxes paid by a rich guy for a mid range luxary car is 30x of an upper middle class person in India.
Rich in India pay 1666 TIMES the tax paid as duties and CVD by a middle class person.

It is important because Oxfam studies completly omits the above in its calculations.
 
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Mrloveday said:
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The total GST collected (by both centres and the states) in 2021-22 was Rs 14.7 lakh crore, and going by the current trends, total GST collections in 2022-23 could touch Rs 18 lakh crore.

NEW DELHI: Contrary to the popular narrative that only a handful of Indians pay taxes, the latest Oxfam report “Survival of the Richest: The India Story” has an entirely different take on the issue.

The report shows how the poorest 50% of the population is paying most of the indirect taxes or consumption-related taxes.

According to the report, a little less than two-thirds (64.3%) of the total GST is coming from the bottom 50% of the population, one-third from the middle 40% and only 3-4% per cent from the richest 10% of the country.

The total GST collected (by both centres and the states) in 2021-22 was Rs 14.7 lakh crore, and going by the current trends, total GST collections in 2022-23 could touch Rs 18 lakh crore.

The Oxfam report further says that the bottom 50% of income group spends a higher percentage of their income on indirect taxes than the middle 40% and the top 10% combined. The bottom 50% of the population at an All-India level pays six times more on indirect taxation as a percentage of income compared to the top 10%.

ALSO READ | Top 10 richest in India have Rs 27.52 lakh crore in wealth: Oxfam

“Estimates suggest that the bottom 50% spends 6.7% of their income on taxes for select food and non-food items. Middle 40% spend half of that at 3.3% of their income on food and non-food items. However, the top 10% wealth group spends a mere 0.4 per cent of their income on these items,” says the report.

The report suggests that the government should reduce the GST slabs on essential commodities, which form the majority of the poor and middle classes’ spending habits and hike the taxes on luxury goods. “This will lead to revenue generation, which is progressive in nature and reduces the burden on the poor,” it says.

Oxfam also exhorts levying a wealth tax on all Indian billionaires. It says that a 3% wealth tax on the total wealth of Indian billionaires can fund the National Health Mission, the largest healthcare scheme in India, with a current allocation of Rs 37,800 crores, for 5 years.

@Sharma Ji @Paitoo @Joe Shearer


www.newindianexpress.com

India's poorest 50 per cent pay two-thirds of GST: Oxfam

NEW DELHI: Contrary to the popular narrative that only a handful of Indians pay taxes, the latest Oxfam report “Survival of the Richest: The India Story” has an
www.newindianexpress.com www.newindianexpress.com
Click to expand...


we find the Middle Class of India on Asian Standard is nearly 31%.
how you people see this news?

=>
Set aside for a moment that India’s population — at 1.4 billion — has surpassed China’s. The real driver of growth for the global travel industry is its surging middle class:

  • This group in India grew 6.3% per year between 1995 and 2021, according to a report by the People Research on India’s Consumer Economy (PRICE).
  • The middle class now represents 31% of India’s population.
  • It is projected to hit 38% by 2031 and 60% by 2047.
Plus, India’s middle class is young — and they have money: 65% of the population is under 35 years old.

skift.com

Is the World Ready to Meet the Indian Middle Class?

Set aside the fact that India’s population has surpassed China’s. The real growth driver for the travel industry is its surging middle class.
skift.com skift.com
.

=>
It now represents 31 percent of the population and is expected to be 38 percent by 2031 and 60 percent in 2047.

economictimes.indiatimes.com

How the middle class will play the hero in India's rise as world power

Imagine desi companies easily growing into global biggies supported by vast domestic scale. Growing disposable incomes, along with the rise of the middle class, will make India a consumption powerhouse.
economictimes.indiatimes.com economictimes.indiatimes.com
 
The question isn't how much tax do rich people pay.
It's not what percent of total tax do rich people pay.

The question is simple: what percent of one's income goes to taxes (direct and indirect combined)?

That percentage is higher for poor people if indirect taxes form a big percent of a country's tax income. I don't know where India stands compared to other countries but developing countries generally rely more on indirect taxes.
 
Developereo said:
The question isn't how much tax do rich people pay.
It's not what percent of total tax do rich people pay.
Click to expand...
Poors in India often work in informal economy so they do not pay income tax or business tax. Most of the tax they pay is consumption tax.

Rich often pay multiple kinds of taxes.

Where rich have privledge is that they are able to structure their income and expenses in a way that they avoid paying a lot of taxes.
 
Mrloveday said:
Your high IQ Gujarati God with MA and engineering degree couldn't spell strength despite a teleprompter helping him .

The researchers who work for Oxfam were selected on the basis of merit. Meanwhile a Dhokla who isn't even fit for a clerical job was made the head of the richest sports body.
Click to expand...
Please give the names and qualifications of the researchers that made this report.
 
AjayGhatak said:
Poors in India often work in informal economy so they do not pay income tax or business tax. Most of the tax they pay is consumption tax.

Rich often pay multiple kinds of taxes.

Where rich have privledge is that they are able to structure their income and expenses in a way that they avoid paying a lot of taxes.
Click to expand...

That just supports my point that, once you add up all direct and indirect taxes, poor people usually end up paying a higher percentage of their income in taxes, especially in countries where indirect taxes are high.

That is why developed countries have a tiered, progressive taxation system with emphasis on direct taxes.
 
Developereo said:
That is why developed countries have a tiered, progressive taxation system with emphasis on direct taxes.
Click to expand...
India does that too. But just as Trump can pay zero income tax for several years, rich folks in India can structure their income and expense cleverly to minimize their tax impact.
 
@c14-Isotope

To assume that the poor are paying more GST than the middle, upper class would mean the poor are consuming more goods and services than the middle, upper class. Is this even possible?

No, it is not. Strangely most people on my SM friends list, believe it to be true. Whether it is out of deficient education or out of sheer crookedness, I live it to your imagination.

Regards
 
Mrloveday said:
Delulu Bhakts who think that Modi is Vishnu Avatara.

He is the ultimate conman
Click to expand...
I have told you before. Start your own political party, stand for PM. No point being a crybaby on an internet forum
 
Mrloveday said:
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The total GST collected (by both centres and the states) in 2021-22 was Rs 14.7 lakh crore, and going by the current trends, total GST collections in 2022-23 could touch Rs 18 lakh crore.

NEW DELHI: Contrary to the popular narrative that only a handful of Indians pay taxes, the latest Oxfam report “Survival of the Richest: The India Story” has an entirely different take on the issue.

The report shows how the poorest 50% of the population is paying most of the indirect taxes or consumption-related taxes.

According to the report, a little less than two-thirds (64.3%) of the total GST is coming from the bottom 50% of the population, one-third from the middle 40% and only 3-4% per cent from the richest 10% of the country.

The total GST collected (by both centres and the states) in 2021-22 was Rs 14.7 lakh crore, and going by the current trends, total GST collections in 2022-23 could touch Rs 18 lakh crore.

The Oxfam report further says that the bottom 50% of income group spends a higher percentage of their income on indirect taxes than the middle 40% and the top 10% combined. The bottom 50% of the population at an All-India level pays six times more on indirect taxation as a percentage of income compared to the top 10%.

ALSO READ | Top 10 richest in India have Rs 27.52 lakh crore in wealth: Oxfam

“Estimates suggest that the bottom 50% spends 6.7% of their income on taxes for select food and non-food items. Middle 40% spend half of that at 3.3% of their income on food and non-food items. However, the top 10% wealth group spends a mere 0.4 per cent of their income on these items,” says the report.

The report suggests that the government should reduce the GST slabs on essential commodities, which form the majority of the poor and middle classes’ spending habits and hike the taxes on luxury goods. “This will lead to revenue generation, which is progressive in nature and reduces the burden on the poor,” it says.

Oxfam also exhorts levying a wealth tax on all Indian billionaires. It says that a 3% wealth tax on the total wealth of Indian billionaires can fund the National Health Mission, the largest healthcare scheme in India, with a current allocation of Rs 37,800 crores, for 5 years.

@Sharma Ji @Paitoo @Joe Shearer


www.newindianexpress.com

India's poorest 50 per cent pay two-thirds of GST: Oxfam

NEW DELHI: Contrary to the popular narrative that only a handful of Indians pay taxes, the latest Oxfam report “Survival of the Richest: The India Story” has an
www.newindianexpress.com www.newindianexpress.com
Click to expand...

What kind of bullshit article is this !!! So much twisting truth ...Mental conditions of these authors should be checked, they are not good to roam freely in a civilized society..
 
deep said:
What kind of bullshit article is this !!! So much twisting truth ...Mental conditions of these authors should be checked, they are not good to roam freely in a civilized society..
Click to expand...
Everyone who exposes Modi is a threat.

Get it
 
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